Latest figures for property values in Yorkshire give cause for pessimism or optimism, depending on which survey you read.

While houses in London and the south east have increased by 12.4 per cent in value over the past year, in the Yorkshire region house prices actually dropped by one per cent - the lowest in England, according to the Halifax.

The growing north-south divide can be seen starkly in the latest Halifax house price index which shows the average home in Yorkshire and Humberside costing £57,439. That is less than half the average cost of a home in Greater London which stands at £127,678.

The price index varies depending on age of home, but average cost of a semi-detached house in the Yorkshire region is £51,717; for a detached house £94,524. London's averages are £153,261 and £257,512 respectively.

But the index forecasts a five per cent increase on average throughout the UK in the final three months of this year.

The cause for optimism is borne out by Northern Rock's latest quarterly survey which shows that property prices rose in North Yorkshire in the three months to April.

Prices increased in nine out of ten property types surveyed, with gains of more than three per cent registered in two types of terraced homes - three-bedroom pre-war which average £51,800 and two-bedroom post-war now averaging £48,050. Post-war three-bedroom terraced house prices climbed by 5.3 per cent, representing an increase of £2,550, to an average of £50,900.

A panel of more than 200 estate agents and valuers throughout the north east found that the market in Scarborough was particularly healthy with property at all price levels selling well. The same is true for York where there is a strong demand, especially for Victorian terraced houses south of the city centre.

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